False Claims Act

How could a town of 1,790 generate $92 million in lab fees in 6 months?

When management company EmpowerHMS took over 18 struggling rural hospitals in 8 states, CEO Jorge A. Perez claimed to be the “savior” that would keep the lights on. But by exploiting federal regulations allowing rural hospitals to bill more for lab tests, Perez and his associates allegedly flowed money into their own pockets.

Meanwhile, employees stopped getting paychecks and hospitals ran out of everything from juice to blood. 12 of the 18 hospitals are in bankruptcy and 8 have closed.

Kaiser Health News

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